Amendment Process Successfully Completed

May 25, 2016: Oslo, Norway, Petroleum Geo-Services ASA ('PGS' or the 'Company') has received consent from the required lenders of the Revolving Credit Facility to amend the leverage ratio maintenance covenant. The maintenance covenant, Total Leverage Ratio ("TLR"), is changed from maximum 4.00:1 to 5.50:1 for the period up to and including Q1 2017, thereafter tightening the maximum TLR by 0.50:1 in each of the subsequent two quarters, then down to the previous TLR of 3.25:1  in Q4 2017. From Q4 2017 the TLR will be tightened by 0.25:1 each quarter down to 2:75:1 by Q2 2018. The TLR is, as before, calculated by dividing the total indebtedness by the adjusted EBITDA for the last four quarters and reported on a quarterly basis. 

Should the Company, at its sole discretion, elect to raise equity in the future, the amendment allows for the adjusted EBITDA in the TLR calculation to include cash proceeds received from one equity issue of the Company. Such proceeds would be included in the TLR calculation for four quarters.

The adjusted EBITDA can also, be adjusted to exclude one-time, non-recurring restructuring cost, if any, up to $30 million.

The margin structure and dividend restriction are the same as earlier. A consent fee is payable to consenting banks.

There are no further significant changes or conditions relating to the amendment. The amendment is subject to completion of documentation.

 

FOR DETAILS, CONTACT:
 

Bård Stenberg, VP Corporate Communications
Phone:  +47 67 51 43 16
Mobile:  +47 99 24 52 35

 

Rune Olav Pedersen, EVP & General Counsel
Phone:  +47 67 51 57 06
Mobile:  +47 90 81 63 37

 

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Petroleum Geo-Services ("PGS" or "the Company") is a focused Marine geophysical company that provides a broad range of seismic and reservoir services, including acquisition, imaging, interpretation, and field evaluation. The Company's MultiClient data library is among the largest in the seismic industry, with modern 3D coverage in all significant offshore hydrocarbon provinces of the world. The Company operates on a worldwide basis with headquarters in Oslo, Norway.

For more information on Petroleum Geo-Services visit www.pgs.com.

 

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.